A court in Montenegro has granted a second bail request for Kwon Do-hyeong, co-founder of Terraform Labs, and Han Chang-Joon, the former chief financial officer. The individuals are facing allegations of using counterfeit passports.
In May, the High Court overturned an earlier bail approval of 800,000 Euros (US$856,000) and requested additional financial information about the two men. The lower court has now reconsidered the bail request and approved it once again.
Two South Korean nationals have been granted house arrest by the Basic Court in Podgorica after their lawyers provided additional financial information, as stated in the court’s official statement on Friday.
Kwon and Han are scheduled for their next court trial on June 16 after being arrested at Podgorica airport for allegedly using counterfeit passports to leave the country, with both individuals denying the charges of document forgery.
Kwon, former CEO of the Terra-Luna cryptocurrency project, faced an Interpol Red Notice seeking his arrest due to fraud charges filed by South Korean authorities after the project’s US$40 billion collapse a year ago.
Kwon denies all allegations and acknowledges errors in the Terra-Luna project but maintains that there was no intention to deceive investors.
The decision to grant bail and house arrest to Kwon and Han, despite the serious allegations they face, raises questions about the effectiveness of the judicial process and the potential risks associated with their release.